I really enjoyed the chapter, “Harnessing Entrepreneurial Energy” by William Foote, because it brought up some really interesting considerations for a person working with developing economies.

Foote brings to light the problem that exists for farmers and cooperatives who are seeking to expand their business, but need funding that falls somewhere between microloans and traditional banking. A lot of the time, banks do not want to provide loans because of the unstable nature of the agricultural industry, or because of the region itself.

I think that Foote has found such an important niche in financing these cooperatives, because they enable individual farmers to improve the quality of their crops, and their output, which attracts more prominent customers, and allows them to move from being subsistence farmers to entrepreneurs. This in turn gives them the freedom to invest their money in other places, such as education for their children. I love how the impact of these loans can be directly seen, and really changes the lives of the people that receive them.

Another part of the chapter that stood out to me was when Foote wrote about his passion for music, and how he was able to connect with people he was visiting and doing business with just by sitting down with them and playing songs on his guitar. This to me showed just how important it is to be sociable, adaptable, and understanding when you are doing business in a different country. It is so important to get to know the people you are working with, and this comes to prove that it is such a personal process and a journey. The mutual enjoyment of music shows that Foote and the farmers are in it together, and even though we are all born under different circumstances, when it comes down to it we are all people who enjoy the same things.

In “Harnessing Entrepreneurial Energy,” William Foote, Founder and CEO of Root Capital, discusses how his company, Root Capital, came to be, and the importance of funding capital to the associations and cooperatives of rural farmers. According to Foote, a cooperative typically involves “farmers coming together for mutual benefit, to fulfill common economic and social needs” (Foote 92). While the farmers in various rural areas like Tanzania, are forming cooperatives in the hopes of increasing revenue and success, most are unsuccessful due to lack of capital funding.

Since these cooperatives are “without access to capital and viable markets for their crops, small- scale farmers in the developing world are trapped in a cycle of poverty” (Foote 93). This is where Root Capital comes in. Root Capital is a “nonprofit organization that grows rural prosperity in poor, environmentally vulnerable places in Africa and Latin America by providing capital, delivering financial training, and strengthening market connections for small and growing agricultural businesses” (Foote 93). While most, if not all, financial institutions are not loaning to these farmers, Root Capital took the initiative to fund loans to these farmers. William Foote, unlike many financial institutions, saw the potential for growth and revenue, and understood that the problem of poverty in these areas, can be mitigated if these farmers were funded and had a higher chance for success.

Root Capital, by not only providing capital, but also the training needed to comprehend financial statements and financial management, was able to significantly help these farmers and to increase their potential approval for capital. Thanks to the efforts and initiatives of Root Capital, places like Guatemala and Uganda, which are stuck in the “missing middle,” are now able to gain access to capital and to grow their operation; they are now able to gain business connections.


In addition, I found the high statistics of loan repayments by the farmers to be very surprising. Foote notes that the farmers maintain a “98 percent repayment rate from the borrowers and a 100 percent repayment rate to the investors” (Foote 98). From this, I realized that possibly, the only obstacle that is standing in the way of success for many of the farmers and cooperatives, is the lack of capital. Clearly, once the farmers and cooperatives are funded, they are able to (in many cases) more than double the revenue. Once other financial institutions realize this and start taking part in the movement, I believe that we would be able to help many families escape from poverty.

Furthermore, another point I would like to bring up is the fact that the farmers are resulting to illegal logging, fuel wood collection, and slash- and- burn, due to the lack of capital funding. These practices are environmentally harmful and, as Foote mentions, will ultimately “trigger environmental degradation and actually WORSEN poverty over the long term” (Foote 94). By providing capital to these farmers, we would not only help increase their success, but also help sustain the environment. I really hope Root Capital can achieve their goal of “spurring other organizations to begin addressing the missing middle” (Foote 99).

William Foote in his journey and the founding of Root Capital is the reason why Fair Trade is and continues to be possible. He is a prime example of someone, that for 10 years has been believing in people, by doing something to make a difference and giving others a chance to live, to survive and to be able to provide for their family, their community and even to the rest of the world. His story about his travel around the world including Tanzania and how his company has help transformed agricultural businesses by making them more sustainable and providing them with capital to invest in updated technology is something that reminds me that anything is possible when an opportunity is given to you.
I think he says it best that without access to capital these small scale farmers are trapped in a cycle of poverty. So he wanted to figure out a way to change this cycle and thus change the outcome. He realized an important issue that one cannot just provide these farmers with capital. They will have to be trained financially and a gap will have to be bridged between them and the market.
I like the example given of how Root Capital lends its money and how companies that they have invested in has increased their revenue and are now able to have access to different sources of financing. A surprising fact to me was that of the amount of loans that have been lent out over the 10 years they have a 98% repayment rate from their borrows and a 100% repayment rate to their investors. What that tells me is that they are doing and have been doing something right. The strategy and model that they obviously have adapted is indeed working.
There are several stories that William has described in this article that reiterates my thinking that when you are in the right place, at the right time things that are good happen. One of those good things was how Root Capital got Green Mountain Coffee Roasters (the company we learned about in class – funny how things come up) to invest. He was playing Nicaraguan revolutionary folk songs and TV cameras were recording him and the next day someone brought up that incident to him on how they seen him on national television. He calls it his fifteen seconds of fame, but it was because of this he feels that Green Mountain ended up investing.
William Foote and Root Capitals mission is extraordinary. They have given communities a fighting chance and have help built and rebuild an entire civilization. The biggest thing of all is that he believes and has a proven success rate. He has involved and brought about awareness that there are people that need help and if we all work together we can accomplish so much more. While we do not have a direct influence on what happens in the world we do contribute to either its recovery or its continued poverty.

I become frustrated when people use any version of, “that’s how it’s always been done.” The thing that sticks out to me to the most in “Harnessing Entrepreneurial Energy” is that William Foote, Founder and CEO of Root Capital, intentionally opposed the established loaning system in order to help people in need of financing. In the article, William Foote describes how difficult it is for out-of-the-way farmers and communes to get financing for their product or export because banks find them to be too risky. It’s a very easy train of thought to realize all the reasons why giving money to a small farming community is a bad idea, but it takes a very creative mind to discover how underserved this market is, and serve it in a meaningful way. Isn’t that the whole point of entrepreneurship? Find an underserved niche!

I think the idea behind Root Capital is successful because they took the idea a few steps past just handing out money. Handing out money would basically be charity and while charity can be helpful, it’s not a long term solution. Instead, Foote describes their mini-MBA style courses that all business owners desiring a loan have to take. The reason Root Capital can boast 98% repayment might be that they’re showing business owners how to manage funds themselves, and through that education, demonstrating how mutually beneficial the cycle of returning money will be to the farmers.

I thought it was interesting that crop production is an alternative to drug farming (such as the cocoa farm in Quinacho). This is another example of people given an opportunity to create income that is economically viable while imparting a sense of pride for the work. Once farmers were able to sustain their livelihood through cocoa farming, they were able to turn away drug cartels that wanted to use their land for drugs. No one needed to turn to demeaning work when their incomes were better than drug cartels could offer, which reminds me of the scores of women around the world that do not have to turn to prostitution once their craft can sustain their families.

In this week's reading about Root Capital I not only found the benevolent goals of the company to be important and worth learning about but also from an entreprenuerial prespective Foote executed a brilliant idea. He found a gap between small and large loans and addressed the probelm by creating a comapny that provides medium sized loans. As an entrepreneur the goal is to find a problem and create a solution in the form of a business. Foote not only succeded in solving a problem but a social problem, while many business simply solve problems that are in the form of inconviencecs in the daily life of a 1st world consumer.

The stories included in this reading not only show how the company is helping people in poverty across the world but it is creating long term sustainable growth in industries that used to have no future for the workers. For example the coffe growers in Tanzania who had to manually depulp coffee beans reducing their quality and wasting water. Root Capital didn't just provide buyers who would pay a decent price, they improved the farmer's whole process by giving them the loan that allowed them to purcahse new equipment. This company has looked beyond the basic aspect of Fair Trade, which is making sure producers are paid decently for their products, and has created a process that allows farmers and artisans to actually expand their businesses so that they can do more than just get by but actually thrive and turn around the cycle of poverty in many of these rural areas.


One of the aspects of Root Capital's plan that I found paticualry interesting was what he called "preinvesting". Preinvesting involves going in and providing training and other assistance to a cooperative or small business that lacks leaders with traditional business education. One example of this that was provided in the reading was Root Capital's preinvesting in ACPU a cooperative of 3,700 coffee farmers in Uganda. When Root Capital's investment advisor in Uganda thought that the cooperative lacked the techincal skills to manage their cash flow and accounting he went in and spent five days training members of the ACPU.

Root Capital uses this tatic as a way to make sure the business they are lending money to can pay them back and make proper use of the loan they are receiving. I think that this idea of preinvestment is a great way to do business. This strategy helps both parties, it allows the cooperatives to use their loan capital more efficently and profitably so that their businesses can thrive while at the same time helping insure that Root Capital gets it loan paid back. Also the training provided dosen't just help the cooperatives manage their money but actually grow their business and better improve every farmers living situation.

After reading “Harnessing Entrepreneurial Energy” I realized there are more opportunities for people in need of fair trade support. Firstly, Shiwahiade doubled her income after they purchased water-efficient processing equipment that in turn lead to her kids going to school and not having to work on the farm. It is amazing to see the standard of living improve so drastically, but many do not have access to this capital, technology, managerial talent, and markets. Root Capital helps make these resources available to people in need.

In this work, I really learned about the becoming and processes of Root Capitol. Root Capital was ignited from a trip to Mexico after Foote gave up his Wall Street job. He noticed a rally of farmers that had passion about being kicked out of their land and wanting their rights and land back. The vanilla co-op had the dedication and purpose, but no capital or credit to back it up. Foote realized that global demand is booming for products that are good for people and good for the planet. Root Capital is the middleman to making this happen.

The best part about Root Capital is that they are not all about just getting the capital to these farmers. They focus on the development of financial training and bookkeeping so that the business can grow and run efficiently. They have successfully strengthened the financial management capacity of nearly 100 producer associations. This puts into perspective just how effective and helpful their company truly is to many farms in the world.

I learned that Root Capital is also a very innovative company. It is expanding its research and development efforts. They also invest in businesses in countries that have recently experienced conflict or disaster. The children singing described in this piece really showed what their efforts were producing. It is fulfilling and real to see these images and get a sense of how the company is really improving the lives of others. A company like Root Capital is hard to come by, but by thinking outside the box, Foote was able to make a success story by helping others.

In "Harnessing Entrepreneurial Energy," William Foote discusses the business framework behind Root Capital and it's efforts to fulfill economic and social needs to farming cooperatives. Read in the light of Shiwahiade, a Tanzanian cooperative farmer, this reading emphasizes the purpose of financing companies and the benefits for both producers and consumers.
I learned that despite global demand for ethically and eco-friendly produced products, there is a missing middle that has lost it's representation, and who are unable to access capital to grow their markets. They are no entirely "unemployed," as they are subsistance farmers, who use archaic machinery to sow their plants, however they lack the support needed for the capability of competing in a global economy. As we have seen before in the documentaries on African labor abuses, these countries are isolated from the global economy. As Gabi had told us during class, I remember the only form of communication the African village had with the outside world was via a talk radio. So this new term of a "missing middlemen" made me realize that despite the financial aid so many people give to these people, it will not help unless we help support these people via financial loans, training, and strengthening market connections. If we fail to do this and settle with putting a few dollars to a donation box, we will continue to fuel this cycle of poverty. Read in the light of my first point, the story of the cooperative at Quinacho is so similar to what Victor had said in our previous class. The money that cycles through these economies fuels for drug trading, violence, and overall social and political injustice. If we are able to instruct these people on proper business practices and jump start their companies, we can expect to see an alternative to drug trade and a growing business.
I also found it inspiring that Foote also makes note of the many strategic partnerships developing to support the "middlemen." Foote notes the Aspen Network of Development Entrepreneurs--building the infrastructure, enabling small and growing businesses to thrive in developing countries. He also created the Global Impact Investing Network--where "big time" investors like JP Morgan, and TIAA-CREF, who are would-be competitors, actually come together and forge alliances. This shows inspiration that shines a new light on the many evils of competition and consumer capitalism.
I am so inspired by Root Capital because the statistics don't lie. There is a proven success rate. And I particularly loved the ending because, sometimes when we least expect it, as he was not that excited to visit another cooperative late at night, he finds the most rewarding part of his practice by seeing the children playing their instruments, a direct cause of his good works, and a beacon of hope that speaks millions to these "middlemen" who are finding business partners and learning important strategies from investors.

William Foote’s story behind his company, Root Capital was inspiring to hear. One of the main points that jumped out at me was when he said that Root Capital’s loan to Shiwahiade improved the quality of her coffee, which in turn, attracted buyers like Starbucks to purchase her coffee. Because of this, Shiwahiade was “able to double her income and reinvested part of her earnings in four cows, six goats, and a new chicken coop, with which she now runs her micro poultry business.” And because of her extra money, her children “no longer work on their farm because their mom can afford school fees, books and uniforms.”

Shiwahiade’s story is a perfect example of Root Capital’s efforts of growing small businesses in poverty-ridden areas and helping the owners develop their skills and stabilize their businesses. I think it is a genius effort on Foote’s part to be the link between large corporations looking for goods, and the struggling small business owners who need a bit of help and nudge in the right direction. My favorite aspect of Foote’s business is the fact that they educate the small business owners on various business topics to help maximize their profits.

Foote referred to the “power of enterprise” which struck me as well because it is reflected significantly through the response of his own company, Root Capital. Foote stated, “In 2011, we made more than 200 loans totalling nearly $130 million in disbursements to small and growing businesses representing more than 250,000 farm households. Over the past 10 years, we’ve made more than 1000 loans, totalling more than $350,000 in credit, and we maintain a 98% repayment rate from our borrowers and 100% repayment to our investors.”

This statement was very impressive to see the growth and success of Root Capital because the success of Foote’s company clearly reflects the extreme success of the small businesses in the third-world countries. It is very satisfying to see the good efforts of the investors in Root Capital and their good will they have towards the struggling business owners. This reminds me of the website, Kiva.org, which similarly allows people to invest a sum of money to business owners that promise to repay later, once their business is profitable.

In “Harnessing Entrepreneurial Energy,” William Foote (the Founder and CEO of Root Capital) focuses on the beginnings of his non-profit organization “that grows rural prosperity in poor, environmentally vulnerable places in Africa and Latin America.”

One part that I thought was an important part in the article is the issue that caused Foote to begin his business in the first place. The challenge that sparked Root Capital are the businesses “stuck in the gap between micro-finance and traditional banking” or what Foote refers to as, “the missing middle.” These businesses, individuals, cooperatives/associations in “the missing middle” are too large for a beginning small scale loan but are also “too small, too risky, or too remote to attract commercial financial institutions.” The purpose of Root Capital is thus, to build a bridge and to cover the gap that exists between the loans to very small companies and the loans to larger and safer corporations. In simpler terms, provide to “the missing middle.”

The information provided on the workings of loans and “the missing middle” really interested me because I saw it as a clear example of how capitalism and the business realm fails. This middle area of individuals that are unable to receive loans to improve their businesses through technology and other methods contributes to a major percentage of the poverty rate, as Foote shares in his article that “approximately 75 percent of the 2.6 billion people living on less than $2 a day are practically excluded from the formal economy.” In other words, the 75% are the missing middle. My favorite part about Root Capital is not only their willingness to provide loans to the individuals others won’t, but also their “three-pronged strategy” of finance, advise, and catalyze. While the first step (finance) is to provide capital and the third (catalyze) is to develop a new industry to fill the missing middle, the second step (advise) stood out to me. The money is the very first step and is what businesses desperately need, but the education and advice to carry on a business and teaching business smarts so the cooperatives won’t be abused by larger corporations, is what I find very important and special about Root Capital. Foote found a glitch in society, and through Root Capital has found a way to improve on this. By filling in the gap and improving the quality of life for these individuals, Fair Trade will be able to grow as the more prosperous the cooperatives become, the more individuals they will be able to take in and include.

While the conditions are so exhausting and difficult for these cooperatives and associations who are struggling to receive loans and improve the effectiveness of their farms, when visitors go into these third world countries and meet the artisans, farmers, etc.. the individuals always seem so filled with hope and inspiration. A quote that stuck out to me in this article was, “What struck me is that in the midst of destruction, it was just amazing to see how excited everybody was. I think that’s the key. There’s this hope and this optimism around unleashing the power of enterprise, even in a devastating situation like that.” I picked business because it gives me a sense of empowerment, a way to make it on my own and become whoever I want to be and do whatever I would like to do. I think it is very true that an enterprise can inspire people with a set goal and mindset. Root Capital is able to allow individuals all over the world, especially in third world countries, to build their enterprise capabilities and attract companies to work with them, providing them hope for their families and themselves.
One last thing I would like to mention, is during Foote’s quick spiel about music creating a common bond and place of community. I found myself actually tearing up during the part when the kids were playing “Jingle Bells” and that the extra earnings the parents had earned from their coffee sales went to pay for a music teacher to “come from the nearest town, two hours away, to teach their children how to play in the brass ensemble.” I know this story is sweet, but it touched me in a way I can’t really explain. I think this is why I believe in Fair Trade, because it allows individuals to provide for their families, especially their children’s futures. It hurts to think that corporations are so greedy when they already have so much, for what.. to provide money to large stockholders so that they can purchase a larger home in the hamptons or a new cadillac? I think it’s easy to forget the little things and the people behind all of our materialistic products, but Foote’s description of the music scene threw it all back in my face and reminded me of the innocence and basic qualities of the world, and what is important.

The passion of William Foote and Root Capital's mission is very inspiring to me. I find it refreshing to see someone from the financial world in Wall St. to break away from the negative reputation of the financial world and do some good in the world.

First and foremost, I found that it was interesting to see the other side of how/why fair trade isn't as popular as it is. Foote discusses that the challenge of businesses in developing areas include "businesses are stuck in the gap, the "missing middle", between micro finance and traditional banking" (Foote 94). Businesses that address the rural poor are often times too large to obtain small business loans but they aren't large enough to get the money from financial institutions.

I find that often times in our class, we we address lack of knowledge to be a main reason as to why fair trade isn't as big as it should be. While this is definitely the case at times, I think that we often forget about the economic and business side of things. This is can be a huge hinderance to the progress of the rate of which businesses can prosper, even if the most developed of areas. Addressing this through Root Capital's 3 step finance, advice, and catalyze strategy is something that I think is definitely a process that can be applied to most of these economic situations.

One aspect that I found to be particularly uplifting was the way that Root Capital was able to partner these small businesses with major corporations like Green Mountain Coffee, Starbucks, and Whole foods. I think that this is huge to think that these kinds of companies are willing to do some good with their businesses. Furthermore, I found it to be ironic that Starbucks is a company that has partnered with Root Capital considering the negative tone we speak about it with in class. I think that it's a huge step forward that there is a growing demand for fair trade products and businesses. Root Capital is definitely a company that is going to change things.

Tonight’s reading, titled “Harnessing Entrepreneurial Energy,” proves that it is possible to steer clear of business as usual and it in some cases more efficient. The CEO of Root Capital, Will Foote, actually started off as a Wall Street banker. He abandoned his respectable position to try to expand banking services to those who need it most. He created a microfinance institution that provides loans to underprivileged communities that are often neglected by commercial banks. His experience reminds me of the guest speaker we had last week who left his position at a hedge fund to provide portable water jugs to Africans. Their successes show that it is possible to stray from the norm and do some good in the world.

Commercial banks tend to avoid poorer communities in fear that entrepreneurial startups from these areas are likely to fail and are too risky. Meanwhile they leverage their assets and invest in more risky ventures such as mortgage bundles. The interesting truth is that the default rate on these microfinance loans is actually 1% in most places which make it significantly less risky than what these banks are used to which is historically around 10% in the US. People in these places need these loans and will do whatever they can to pay them off. These people are desperate and they know that if they don’t pay off the loan, they will not be able to get additional funding in the future.

Mr. Foote focuses on farmers who have difficulty financing improvements to their land or technology to increase their future production. His company gives courses to all business owners that wish to receive loans which increase their knowledge base on how to run a successful business. The five day courses taught in Uganda focused on teaching local entrepreneurs the technical skills needed to manage their cash flow and improve their accounting practices. Root Capital boasts a repayment rate of over 98% which goes to show that microfinance banking can be successful and less risky than commercial banking if done correctly. It is also more effective than charitable giving because it offers a long term solution for improving the quality of life of these farmers. By installing water efficient processing equipment, many farmers were able to care for the land without needing the help of their children. In turn, this allows more farmers to send their kids to school which has long term residual effects on the quality of life in the area and the ability for these kids to succeed.

The efforts of Root Capital to provide loans to the underprivileged at a fair interest rate is a great example of fair trade in the microfinance sector, but the extent of their services stretches much further. The ability for farmers to fund expansion projects for producing cash crops such as cocoa allows them to avoid working for oppressive drug lords. Drug farming is quite common in these poorer areas since impoverished people are much easier for these drug lords to exploit and manipulate. Once they get the funding to create the foundation needed for a sustainable, legal, and ultimately rewarding business, they are able to improve their quality of life and that of the community as whole.

The article "Harnessing Entrepreneurial Energy" was a very uplifting perspective to read about. I found it interesting to see a for-profit company try and make a difference in the world.
One fact that I pinpointed from the article was how if most farmers had some help in their finances like from a micro-loan then their chances in being a successful and having an opportunity to have a better life not only for themselves but their families as well. This part really struck me because it showed how just a little support can help various people out in exponential ways. Instead of struggling to make enough food for families to have at least food on the table, these micro-loans are also allowing for the children of these farmers to have a better life and an ability to better themselves in school.
Another point that was very interesting in the article was the idea of what happens when farmers aren't successful when their fair trade endeavors fail. The author spoke about how most people have a tough time competing with the drug trade and when they don't have any other options, most likely seek it out as an easier way to make money and support their families. This was very upsetting to me because all of these farmers just want a better life and when the right way doesn't make them any money they are pressured to succumb to illegal practices in order to have their next meal on the table.
Companies like Root Capital are very inspiring in some ways when it comes to finding a different need and trying to fix it. I found this article quite insightful and look forward to talking about it more in class.

“Harnessing Entrepreneurial Energy” proved to be a very interesting read. The story about Shiwahiade from Tanzania made me optimistic about how fair trade can help so many people in the world in situations like hers. She went from making $2 a day and not being able to educate her two sons to being self sufficient. She doubled her income and was able to invest in buying farm animals like cows, goats, and a new chicken coup. Through joining Root Capital’s association she was able to completely change her life around.

Root Capital’s business model is fantastic in my opinion. Will Foote and his colleagues are able to turn struggling farmers into successful entrepreneurs by providing them with capital, technology, managerial training, and access to markets to sell the products. What a perfect setup to help get people like Shiwahiade on their feet.
A particular statistic really shocked me. In the developing world, 75% of the 2.6 billion people living on less than $2 a day are excluded from the rural economy. I never realized how astoundingly high these numbers are. Foote realized this disparity and recognized the happy medium between micro finance and traditional banking. These small agricultural communities do not have access to traditional banking. They need outside help, and this help is provided by Root Capital. At the end of the article, when Foote was observing the proud parents watching their children make music, it made me realize how Root Capital is not only helping a family, but the generations to follow. Root Capital puts a structure in place to allow these people to be entrepreneurial and the families can pass their knowledge and expertise down to the children so they can also be successful for years to come.

The first thing that immediately meaningful to me was how William Foote, CEO and Founder of Root Capital, left his job in the financial industry to go to Mexico. It reminded me of how our speaker last week, did something very similar.

I thought the story of Shiwahiade was quite touching. After Root Capital made a donation to finance the purchase of water-efficient processing equipment, and a centralized milling facility, Shiwahiade and her children's life improved drastically. Not only did it help Shiwahiade, but apparently hundreds of other families benefited as well. Shiwahiade was able to double her income and invest in farm animals, and consequently her children no longer had to work on the farm. After hearing this story, I have more hope for the millions of people just like Shiwahiade that can get help from companies like Root Capital.

I think its up to intelligent entrepreneurs who have knowledge in fair trade and finance, like William Foote, to start non profits that help grow rural prosperity and help with the "missing middle." William Foote shows how if you have the drive, how simple it can really be to help local businesses.

I think Root Capitals mission to "finance, advise, and catalyze" is a great foundation for a non profit like this. I specifically liked the advise part, where Root Capital builds local capacity and talent through financial education and training, so that people with no formal education can better compete in world markets. Education is really such an important part of micro finance, so that these people in rural areas can continue on there own, after assistance from Root Capital. I think this is way more effective and beneficial than simply donating money. Education and of course surrounding resources seem to really be the root of the problem when it comes to poverty, further reminding us how an opportunity for education is so important for everyone.

After reading Foote’s ‘Harnessing Entrepreneurial Energy,” I was particularly struck by a few key points that I will address in this reaction paper.

One of the main issues that particularly moved me was the level of work that it took to move some of these impoverished farmers like Shiwahiade and Quinacho from living on less than $2 a day to living on a stable income - enough to feed and clothe their families. All she needed was a quick loan from Root Capital and she was able to join a co-op and get off the ground, so to speak. As in previous readings, this made me hopeful for our class’ contributions to the Fair Trade movement.

On the same note, the farmers in the vanilla cooperative in Mexico failed because they didn’t gain enough traction to get their model off the ground. Failures like this cooperative demonstrate that working in the fair trade industry is a risky business, and that it does not take an incredible force to topple any of these companies over and put the workers behind them at serious risk.

However, my thoughts have lately shifted from discussing the successes and failures and have moved towards why people have not done more for the movement as it stands. If it does not take a Herculean task to help a disadvantaged worker, why aren’t we doing more to help these people? If they can easily get by on a fraction of our income, why hasn’t there been a stronger movement to help various farmers stay economically afloat? I think that readings like this will be a strong impetus to push forward in my work with fair trade, but the more I hear about the changes this work makes in people’s lives, the more I wonder why there aren’t more widespread programs. For instance, Fordham is the only university with three different fair trade classes. If there are institutions that are based on faith traditions that focus on helping the poor in any situation possible, shouldn’t there be more programs and classes all over the country? It’s just a thought.

I was really inspired by William Foote’s “Harnessing Entrepreneurial Energy” because it once again proved that there are people in the world willing to put the effort in to solve the systemic problems of the business world. It was very interesting to read how he was not only improving the lives of thousands of workers, but enabling them to offer the best possible versions of their products to have more of a fair shot at competing in the global marketplace.

The story in the beginning about Shiwahiade, who was forced to employ her own children, rather than sending them to school, and still was not making enough money to keep her family fed. However, after receiving a loan from Root Capital, she was enabled to purchase the machinery to depulp the coffee beans and provide a much higher quality product with less effort, time, and wasted water. The high quality coffee beans enabled her to make the enough money to expand into poultry sales and send her children to school.

It is very interesting to read about more ways to help the people in developing nations who have historically remained trapped in the cycle of poverty. In America, I do believe there are extremely generous people who are willing and able to help people in third world countries, but the only way they know to do that is through donations to charity. Through Fair Trade and companies like Root Capital, people are able to help others build a sustainable business and a constant means of income to provide themselves with a better life. Going back to the Universal Declaration of Human Rights, every human being has the right to an autonomous life where they do not have to depend on the charity of others to get by. The loans provided by Root Capital take charity completely out of the equation by giving people the opportunity to build a maintainable business to achieve financial stability on their own.

I was also very struck by the success rates of the loans. The article stated that 98% of the loans are prepaid in principle plus interest. This is just more proof to further support the argument that fair trade is a sustainable business model and has the potential to become more and more successful as greater number of people learn about it and get involved.

Yes to the Root Capital's business model! William Foote and his team are providing a second chance to all those who are struggling and underprivileged. The whole beginning story was a great analogy to what they are doing with the company, and a great way to portray that all you need is a little push from a friend to go a long way.
What stuck out to me was the story about Quinacho, a cooperative of 550 cocoa farmers located in northern Peru. This area was known to be a bad area due to all the drug productions, but this wasn't the only main reason why local banks would not give them a loan. There were reasons such as no traditional collateral, the manager was under educated, and basically they told them it was too hard to trust them with a loan; too much risk. But I liked how Root Capital was willing to take the risk in order to help push Quinacho into great success. They moved from a 500,000$ revenue to $4 million revenue with an aid of the $50,000 loan which they got paid back $1 million.
Not only is Root Capital helping people start and maintain their businesses in these developing countries, but they're helping to give these people a happier life. A life where these people don't have to worry about sending their kids to work, but rather worried how well they are doing in school. A life where they don't have to worry about being hungry. A life where they are just a bit more free.

One of the things that stood out to me about the reading was the way the idea for Root Capital came to be. William Foote, the founder, recognized the gap between businesses that were too large for microfinance but too risky for traditional investing routes. He saw this firsthand during his extended trip in rural Mexico. It’s just a great thing to read about how people get inspired and how a change of environment is sometimes vital for opportunities to be seized.

Another thing that really impacted me about the reading is how much investment opportunity there actually is in these developing countries. With a bit of a finance background, I always hear about how lucrative the emerging markets can be. I wasn’t aware, however, of how much potential there is to invest in budding industries through the different cooperatives in these countries.

As an inspiring entrepreneur, I sometimes get discouraged when I feel like every idea has already been monetized or developed. I know it’s not logical, but it seems like somehow the inspiration is out of my reach. It’s very inspirational to see the way people get the idea to start a company, especially when it happens out of the blue. Foote saw the opportunity doing something to make a change and then figured out how to make it a viable business. Hopefully, through my education and future life experiences, I will be able to obtain a similar skill.

One of the most important things I’ve learned from this class is how powerful of a change one can make with a business investment in a community. Giving someone the foundational help they need to empower them to make money is getting simpler everyday. Microfinance is a direct option, but there are other options such as purchasing fair trade or rainforest alliance goods. What is incredible, though, is tapping investment funds such as Root Capital which change communities. Fair trade helps a few people over the long-term, but these investments (ranging from $50,000 to well into the millions) can completely transform a community. This money allows proper infrastructure to be built that will last for years. Also, another point to note, is how diligent these people are to repay their loan: 98% repayment!